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Unformatted text preview: ACC 311 - Quiz 6 – 8 Points Each Unless Marked Name _______________________ 1. Assume you receive $1,000 cash on each December 31 st for three years (2009, 2010, and 2011). On January 1 st , 2009, what is the present value of these payments assuming an interest rate of 10 percent? $ 2,486.90 2. On January 1, 2009, Starbucks bought some new delivery trucks. The company signed a note payable agreeing to pay $300,000 on December 31, 2013. The market interest rate for this note is $14%. What is the appropriate journal entry needed on January 1 st 2009 ? ACCOUNTS DEBIT CREDIT Trucks or Equipment 155820 Notes Payable 155820 3. You have won the lottery and have two choices for collecting your winnings. You can collect $50,000 today or receive $13,005 per year for the next 5 years. A financial analyst has told you that you can earn 10% on your receive $13,005 per year for the next 5 years....
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This note was uploaded on 05/26/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.
- Fall '08
- Financial Accounting